Coburg voters approve sales tax hike funding libraries, housing in central neighborhoods

The Coburg City Council placed a referendum on the November ballot that would enact a 0.5 percent sales tax increase for three years to finance library expansions and affordable housing units in designated zones. Passage would raise the local sales tax rate to 7.25 percent on most retail purchases inside city limits.

The measure follows the release of the 2025 annual budget review, which recorded a 1.2 million dollar shortfall in general fund revenue and prompted the council to seek voter approval for targeted collections rather than across-the-board cuts.

Distribution of Benefits and Costs

Households within the central district would gain extended library operating hours on weekends and new after-school programs once the first tranche of funds arrives. Renters in two zip codes targeted for housing construction could apply for units built with the projected revenue stream.

Shoppers and small businesses along the east commercial corridor would remit the higher tax on daily purchases yet see none of the listed construction sites in their immediate area, according to the project map attached to the referendum filing.

City budget documents project annual collections of 2.4 million dollars, with 60 percent earmarked for the central library branch and 40 percent for housing subsidies in the same corridor.

Implementation Timeline

If voters approve the measure, tax collection would begin 1 January 2027 and continue through December 2029, with quarterly reports issued by the city finance department to the community advisory board created under the ordinance.

Residents may examine the full text and project list at the city clerk's office or request copies through the municipal records portal before early voting opens in October.